Azure Power Signs 600 MW PPA With SECI Under 4 GW Projects

Azure Power (NYSE: AZRE ) today announced that it has signed Power Purchase Agreements (PPAs) for 600 MW ISTS connected solar power projects with Solar Energy Corporation of India (SECI), under its 4 GW manufacturing linked projects, which will supply power for 25 years at a fixed tariff of INR 2.54 (~US 3.4 cents ) per kWh. The projects will be constructed in Rajasthan, the highest solar insolation state in India, for which connectivity approval is in place, and land is fully identified and is under acquisition. The commissioning timeline for the projects as per the agreement is Q3 FY 2024.

Speaking on this occasion, Ranjit Gupta, MD, and CEO, Azure Power, said, "Continuing on our communication regarding our progress with SECI on the 4 GW manufacturing linked projects, we are happy to announce the signing of our first PPAs for 600 MW capacity. This is a significant milestone, given the long wait. With things now falling into place, we are on our way to see our 4 GW pipeline turn into contracted capacity and help us realise significant value accretion for our stakeholders. We understand SECI is progressing to tie up Power Sale Agreements for further capacity in the tender and we expect to sign PPAs when the corresponding PSAs are in place. We remain committed to our policy to only take on contracts that create shareholder value and earn returns above our cost of capital."